Federal Trade Commission Guides For the Rebuilt, Reconditioned and Other Used Automobile Parts Industry

DEFINITIONS:
Industry Member:  Any person, firm, corporation or organization engaged in the sale or distribution of any industry product as defined below.

Industry Products:  Industry products are automotive parts and automotive assemblies which have been used or which contain used parts, whether such parts or assemblies have been rebuilt, remanufactured, reconditioned, relined, or otherwise. The term “automotive assemblies” as herein used mean any part or assembly designed for an automobile, truck, motorcycle, tractor or similar self-propelled vehicle. Industry products include, but are not limited to, armatures, generators, starters, carburetors, clutches, distributors, connecting rods, crankshafts, cylinder blocks, engine assemblies, fuel pumps, brakes, master and wheel brake cylinders, power brakes, shock absorbers, starter drives, solenoids, automatic transmissions, regulators, spark plugs, springs, windshield wiper motors and water pumps. Automobile tires are not products of the industry.

DECEPTION AS TO PREVIOUS USE OF PRODUCTS:
It is an unfair trade practice to represent, directly or by implication, that any industry product is new or unused, or that any part of an industry product is new or unused when such is not the fact, or to misrepresent the extent of previous use thereof.

It is an unfair trade practice for an industry member to offer for sale or sell any industry product unless a clear and conspicuous disclosure that such product has been used or contains used parts is made in all the industry member’s advertising, sales promotional literature and invoices concerning the product, on the container in which the product is packed and if the product has been rebuilt, remanufactured, reconditioned or has the appearance of being new, on the product with sufficient permanency to remain thereon after installation for a reasonable period of time under ordinary conditions of use, and in such manner that said disclosure cannot be easily removed or obliterated.

Form of Disclosure: The disclosure that an industry product has been used or contains used parts as required by this section may be made by use of a word such as, but not limited to, “Used,” “Second-hand,” “Repaired,” “Remanufactured,” “Reconditioned,” “Rebuilt,” “Relined,” whichever is applicable to the product involved. On invoices to the trade only the disclosure required by this section may be made by use of any number, mark, or other symbol which is clearly understood by all purchasers receiving such invoices as meaning that the products, or parts thereof, identified on the invoices have been used.

Conspicuousness of Disclosure: The disclosure required by this section shall be of such size or color contrast and so placed as to be readily noticeable to purchasers or prospective purchasers reading advertising, sales promotional literature, or invoices containing same, or reading any representation as to content on the container in which an industry product is packed, or inspecting an industry product before installation, or with a minimum of disassembly after installation.

It is an unfair trade practice to place any means or instrumentality in the hands of others whereby they may mislead purchasers or prospective purchasers as to the previous use of industry products or parts thereof.

DESCRIPTION AS TO IDENTITY OF REBUILDER, REMANUFACTURER, RECONDITIONER OR RELINER:
(a) It is an unfair trade practice to misrepresent the identity of the rebuilder, remanufacturer, reconditioner or reliner of an industry product.

(b) In connection with the sale or offering for sale of an industry product if the identity of the original manufacturer of the product, or the identity of the manufacturer for which the product was originally made, is revealed and the product was rebuilt, remanufactured, reconditioned or relined by other than the manufacturer so identified, it is an unfair trade practice to fail to disclose such fact wherever either of said manufacturers is identified in advertising and sales promotional literature concerning the product, on the container in which the product is packed, and on the product, in close conjunction with, and of the same permanency and conspicuousness as, the disclosure of previous use of the product required by this section. Examples of disclosures considered to be in compliance with the requirements of this section are as follows:

(1) Disclosure of the identity of the rebuilder as, for example:
Rebuilt by John Doe Co.

(2) Disclosure that the product was rebuilt by an independent rebuilder as, for example:
Rebuilt by an Independent Rebuilder

(3) Disclosure that the product was rebuilt by other than the manufacturer so identified as, for example:
Rebuilt by other than XYZ Motors

(4) Disclosure that the product was rebuilt for the identified manufacturer, if such is the case, as, for example:
Rebuilt for XYZ Motors

MISREPRESENTATION AS TO CONDITION OF PRODUCTS AND MISUSE OF THE TERMS “REBUILT,” “FACTORY REBUILT,” “REMANUFACTURED,” ETC.:

(a) It is an unfair trade practice to use, or cause or promote the use of, any statement or representation in advertising, on containers, on industry products, or elsewhere, which has the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers as to the condition of an industry product, or the extent that an industry product has been repaired or reconstructed.

(b) It is an unfair trade practice to use the words “Rebuilt,” “Remanufactured,” or words of similar import, as descriptive of an industry product which, since it was subjected to any use, has not been dismantled and reconstructed as necessary, all of its internal and external parts cleaned and made free from rust and corrosion, all impaired, defective or substantially worn parts restored to a sound condition or replaced with new, rebuilt, or unimpaired used parts, all missing parts replaced with new, rebuilt or unimpaired used parts, and such rewinding or machining and other operations performed as are necessary to put the industry product in sound working condition.

(c) It is an unfair trade practice to represent an industry product as “Factory Rebuilt” unless the product was rebuilt as described in paragraph (b) of this section at a factory generally engaged in the rebuilding of such products.